Chapter 6
Industry Analysis
Legal Factors
The following are the essential business permits and licenses in the Philippines:
DEPARTMENT OF TRADE AND INDUSTRY
1. Check for availability of name.
2. Present the register form to the DTI office.
3. Complete all requirements (ID, SPECIFIC BUSINESS NAME, AND PROPRIETOR HIMSELF/HERSELF.)
4. Pay the necessary amount.
5. Get the DTI certificate.
Fees apply depending on the scope of your business: Barangay – Php 200; City/Municipality – Php 500; Regional – Php 1,000; and National – Php 2,000.
Source: http://www.mixph.com/business-registration-steps-at-dti/
BARANGAY CLEARANCE
1. Go to your place 's Barangay Hall.
2. Reason why you need a Barangay Clearance (ID requirement, employment, Postal …show more content…
Of these big industry, burger and chicken inclined fast food stores are the leaders.
KRA’s of the Industry (from the external analysis)
• Number of Branches
• Brand Awareness
• Customer Loyalty
• Market Share Every fast food is considered a big player if it has a lot of branch. This could be seen with McDonald’s, Jollibee, and KFC. These three brands are already established in the minds of consumer, hence start-ups are the ones working for brand awareness. After being established or known to customers, all brand want to develop customer loyalty. Customer Loyalty means that customer consistently makes repeat purchase and patronize the product even if new brands come. The general effect of all these is getting a large market share.
Reference: www.reportlinker.com/d0111692028/Food-Industry.html?pos=1
Level of Industry Competition
(High)
With regards to the 5 Forces of Industry Analysis we created, competition in the industry is high. There is a high competition in the fast food industry. Number one reason is that big players already got a large portion of the market share. Also,the food industry is easy to penetrate. Despite all these, the industry is still catering a large amount of …show more content…
Bargaining Power of Suppliers
(Low)
• Diverse suppliers than do not have monopoly whether it is imported or a local produce
• Backward integration is not advisable and most suppliers do not engage in forward integration
• A lot of substitute suppliers are available
Cheapest price is not hard to find
Bargaining Power of Consumers
(Medium)
• Buyers are highly price sensitive
• Number of buyers are too large that it request more supply
• Uniqueness of the product and service is hard to substitute
Consumer lifestyle is complemented well by our product
Threat of Substitute Product
(High)
• With regards to the product, substitutes are everywhere but service style is what normally differentiate each competitor
Despite the availability of many substitute, price is often different from one
Threat of New Entry
(High)
• Entering the industry is easy
• Introducing new concepts are always an edge is properly executed
• Low barriers to entry
• Industry is increasing fast
Capital required is very minimal and legal policies are not so strict with regards to food
Competitive Rivalry
(High)
• Industry’s market is shared by large players, only a few portion is shared by small-time competitors
• Product is highly differentiated against other
Industry Analysis
Legal Factors
The following are the essential business permits and licenses in the Philippines:
DEPARTMENT OF TRADE AND INDUSTRY
1. Check for availability of name.
2. Present the register form to the DTI office.
3. Complete all requirements (ID, SPECIFIC BUSINESS NAME, AND PROPRIETOR HIMSELF/HERSELF.)
4. Pay the necessary amount.
5. Get the DTI certificate.
Fees apply depending on the scope of your business: Barangay – Php 200; City/Municipality – Php 500; Regional – Php 1,000; and National – Php 2,000.
Source: http://www.mixph.com/business-registration-steps-at-dti/
BARANGAY CLEARANCE
1. Go to your place 's Barangay Hall.
2. Reason why you need a Barangay Clearance (ID requirement, employment, Postal …show more content…
Of these big industry, burger and chicken inclined fast food stores are the leaders.
KRA’s of the Industry (from the external analysis)
• Number of Branches
• Brand Awareness
• Customer Loyalty
• Market Share Every fast food is considered a big player if it has a lot of branch. This could be seen with McDonald’s, Jollibee, and KFC. These three brands are already established in the minds of consumer, hence start-ups are the ones working for brand awareness. After being established or known to customers, all brand want to develop customer loyalty. Customer Loyalty means that customer consistently makes repeat purchase and patronize the product even if new brands come. The general effect of all these is getting a large market share.
Reference: www.reportlinker.com/d0111692028/Food-Industry.html?pos=1
Level of Industry Competition
(High)
With regards to the 5 Forces of Industry Analysis we created, competition in the industry is high. There is a high competition in the fast food industry. Number one reason is that big players already got a large portion of the market share. Also,the food industry is easy to penetrate. Despite all these, the industry is still catering a large amount of …show more content…
Bargaining Power of Suppliers
(Low)
• Diverse suppliers than do not have monopoly whether it is imported or a local produce
• Backward integration is not advisable and most suppliers do not engage in forward integration
• A lot of substitute suppliers are available
Cheapest price is not hard to find
Bargaining Power of Consumers
(Medium)
• Buyers are highly price sensitive
• Number of buyers are too large that it request more supply
• Uniqueness of the product and service is hard to substitute
Consumer lifestyle is complemented well by our product
Threat of Substitute Product
(High)
• With regards to the product, substitutes are everywhere but service style is what normally differentiate each competitor
Despite the availability of many substitute, price is often different from one
Threat of New Entry
(High)
• Entering the industry is easy
• Introducing new concepts are always an edge is properly executed
• Low barriers to entry
• Industry is increasing fast
Capital required is very minimal and legal policies are not so strict with regards to food
Competitive Rivalry
(High)
• Industry’s market is shared by large players, only a few portion is shared by small-time competitors
• Product is highly differentiated against other